Credit Card Fees

Beware: Secret Credit Card Fees

Since being forced to change or limit the number of fees that they can charge customers, banks and credit card companies have started to tweak their tactics and introduce new ones to keep fees flowing and customers guessing.

Once you've figured these them out, avoiding these fees can be easy. However, it's learning what they are and how they affect your monthly bill that can be tricky. While most of the new fees have been applied to credit cards, you should also keep a close eye on your monthly debit card statement.

knowing is half the battle

On July 21, 2010, the banking industry was turned upside down as President Obama signed the Wall Street Reform and Consumer Protection Act into law. Credit card issuers, already struggling with the fee-limiting regulations of the 2009 CARD act, were now forced to scramble to maintain their profit levels. As a result, banks have begun resorting to new — and sometimes misleading — tactics to stabilize their earnings.

Avoid card issuers who prey on consumers by learning which fees to watch out for.

Foreign transaction fees

Consumers often compare the best credit card rates for travel rewards. However, just finding a great rewards program does not mean you are in the clear. If you plan on visiting international soil or purchasing an item from an online store that processes orders overseas, double-check what your credit card company charges for foreign transactions. On average, issuers charge between 2% and 3%, but Capital One and some Chase cards offer a no-fee policy for overseas purchases.

Payment protection fees

If you routinely carry a large balance on your credit card, it could be time to check your statement and make sure you’re not paying this monthly fee. A payment protection fee provides minimum payments and suspends any finance charges if you’re unemployed, ill or have some other type of hardship. Protection plans can come with fees as high as $0.90 for every $100 on your balance. If you are a heavy holiday shopper and plan to rack up thousands of dollars of bills, recognize you could get hit with monthly fees of $90 and up.

Extra hint: This charge can also be called "credit shield" and "credit safeguard."

Activity fees

More commonly known as inactivity fees, these charges come from banks that penalize consumers who do not consistently use their cards or accounts. The fees vary, applied differently to credit cards than checking and savings accounts, and can range from $10 to $100. What is consistent is the point at which banks can issue the fee. Currently the window is 12 months without activity.

Paper statement fees

For those who have multiple accounts, the monthly costs associated with this fee can add up quickly. While the practice is not yet common, many banks are deciding to charge consumers who choose to receive paper statements by mail, instead of following their account information online. Therefore, make sure to review your bank statement, as this fee varies. Some banks have become extremely aggressive, such as Bank of America, which is charging $9 per month on some checking accounts.